Regulatory Alerts2023-04-26 | Banking Act Directions No. 03 of 2023Amendments to Banking Act Directions No. 01 of 2023 on Discretionary Payment Restrictions for Licensed Banks
The Monetary Board of the Central Bank of Sri Lanka amends Direction 3.4(b) to restrict increases in management allowances for the Chief Executive Officer and Key Management Personnel, as well as Board of Directors payments. Licensed banks must secure Human Resources and Remuneration Committee recommendations and Board approval before raising these payments, ensuring compliance with Basel III capital requirements, minimum liquidity ratios, expected asset growth, and 2023 budget allocations. Affected institutions are further required to notify the Director of Bank Supervision fourteen days prior to implementing such increases, accompanied by certified extracts from the relevant board meetings.
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